Volkswagen in talks to buy stake in EV joint venture partner JAC
By Nikita Chaurasia  Date: 2019-04-11

Volkswagen in talks to buy stake in EV joint venture partner JAC

Apparently, JAC has been in discussions with VW for quite a while now, on extending its collaboration with the German giant on new energy vehicles.

Germany-based automotive conglomerate, Volkswagen AG, has apparently made it to the headlines for having announced that it plan to explore the purchase of a huge stake in JV partner JAC Motors. Authentic reports claim that VW’s move follows the initiatives taken by its fellow rivals Daimler and BMW to strengthen their dominance in the Chinese automotive industry.

As per sources familiar with the knowledge of the matter, VW is now keen to strengthen its ownership in the world’s largest automobile market, post the relaxation of regulations by Beijing last year. With this move, JAC is likely to emerge as one of the most pivotal contenders to help VW in its long-term goal concerning EVs. Indeed, it has been speculated that VW may shift some of its planned EV production in China to JAC in the event that the proposed take acquisition comes to fruition.

According to an official claim by VW, the company has been treading on a cautious path as far as the implications on its business as well as its JV partners are concerned. The statement also affirms that the company plans to explore all the available options with its stakeholders to ensure long-term success in China,

An official statement by VW’s Chinese electric vehicle joint venture partner claims the company to have stated that JAC has been in talks with the German conglomerate for quite a while now, pertaining to the extension of the JV agreement on new energy vehicles. No formal plan has taken shape so far, however, claims an anonymous source.

American investment bank Goldman has apparently been selected by Volkswagen to advise the automotive giant regarding the proposed buyout. Goldman has not publicly commented on VW’s purchase yet.

For the uninitiated, Volkswagen boasts of a market capitalization of almost USD 85 billion, however, the company has no shares in JAC, reported to be valued at USD 1.9 billion.

About Author

Nikita Chaurasia    

Nikita Chaurasia

An accomplished professional in the field of content development, playing with words comes naturally to Nikita Chaurasia. After completing her post-graduate MBA degree in Advertising and PR, Nikita worked across numerous content-driven verticals, undertaking diverse r...

Read More

More News By Nikita Chaurasia

Insight unveils new Tech Journal for small & midmarket businesses
Insight unveils new Tech Journal for small & midmarket businesses
By Nikita Chaurasia

Insight Enterprises, a renowned US-based technology company and an integrator of the Insight Intelligent Technology SolutionsTM for companies of all sizes, reportedly unveiled a new magazine titled Tech Journal. This magazine would be published each...

Tesla CEO Elon Musk reveals plans to build ventilators for COVID-19
Tesla CEO Elon Musk reveals plans to build ventilators for COVID-19
By Nikita Chaurasia

U.S. auto giant Tesla, Inc.’s CEO, Elon Musk has recently made headlines when he announced that his company is planning to develop ventilators for COVID-19 patients. The move comes after the United States government’s latest appeal for do...

Google News launches Project Oasis to support local entrepreneurs
Google News launches Project Oasis to support local entrepreneurs
By Nikita Chaurasia

Google News has apparently launched Project Oasis in partnership with the University of North Carolina, Table Stakes co-founder Doug Smith, and LION Publishers. The partnership is aimed at helping the founders and aspiring founders of digital ne...

Pfizer collaborates with BioNTech to develop coronavirus vaccine
Pfizer collaborates with BioNTech to develop coronavirus vaccine
By Nikita Chaurasia

Increasing numbers of coronavirus cases worldwide have prompted researchers to develop a potential vaccine candidate to treat COVID-19 patients. Pfizer Inc., one of the leading American pharmaceutical companies, has reportedly collaborated with BioNT...

Amplitude completes debut acquisition with ClearBrain buyout
Amplitude completes debut acquisition with ClearBrain buyout
By Nikita Chaurasia

Amplitude, a comprehensive product intelligence company, announced that it has acquired the software company ClearBrain to accelerate big product bets. The acquisition will enable customers of the company to estimate about the revenue growth driving ...